Question
LOCKHEED MARTIN CORPORATION Consolidated Balance Sheet At December 31, (in millions) 2017 Forecasted 2016 Actual Cash and equivalents $ 6,715 $ 1,837 Receivables, net 9,526
LOCKHEED MARTIN CORPORATION Consolidated Balance Sheet At December 31, |
(in millions) | 2017 Forecasted | 2016 Actual | ||
Cash and equivalents | $ 6,715 | $ 1,837 | ||
Receivables, net | 9,526 | 8,202 | ||
Inventories, net | 5,385 | 4,670 | ||
Other current assets | 399 | 399 | ||
Total current assets | 22,025 | 15,108 | ||
Property, plant and equipment, net | 5,358 | 5,549 | ||
Goodwill | 10,764 | 10,764 | ||
Intangible assets, net | 3,892 | 4,093 | ||
Deferred income taxes | 6,625 | 6,625 | ||
Other noncurrent assets | 5,667 | 5,667 | ||
Total assets | $54,331 | $47,806 | ||
Accounts payable | $ 1,916 | $ 1,653 | ||
Customer advances and amounts in excess of costs | 7,829 | 6,776 | ||
Salaries, benefits and payroll taxes | 2,026 | 1,764 | ||
Current portion of long-term debt | 0 | 0 | ||
Other current liabilities | 2,349 | 2,349 | ||
Total current liabilities | 14,120 | 12,542 | ||
Long-term debt, net | 14,282 | 14,282 | ||
Accrued pension liabilities | 16,041 | 13,855 | ||
Other postretirement benefit liabilities | 985 | 862 | ||
Other noncurrent liabilities | 4,659 | 4,659 | ||
Total liabilities | $50,087 | $46,200 | ||
Common stock | $ 289 | $ 289 | ||
Retained earnings | 15,962 | 13,324 | ||
Accumulated other comprehensive (loss) | (12,102) | (12,102) | ||
Total stockholders' equity | 4,149 | 1,511 | ||
Noncontrolling interests in subsidiary | 95 | 95 | ||
Total equity | 4,244 | 1,606 | ||
Total liabilities and equity | $54,331 | $47,806 |
LOCKHEED MARTIN CORPORATION Consolidated Income Statement For the year ended December 31, | |
(in millions) | 2017 Forecasted | 2016 Actual | |
Net sales | |||
Products | $46,420 | $40,365 | |
Services | 8,328 | 6,883 | |
Total net sales | 54,748 | 47,248 | |
Cost of sales | |||
Products | 42,103 | 36,616 | |
Services | 7,304 | 6,040 | |
Severance and other charges | 0 | 80 | |
Other unallocated corporate costs | 0 | (550) | |
Total cost of sales | 49,407 | 42,186 | |
Gross profit | 5,341 | 5,062 | |
Other operating income | 487 | 487 | |
Operating profit | 5,828 | 5,549 | |
Interest expense | 663 | 663 | |
Earnings before income taxes | 5,165 | 4,886 | |
Income tax expense | 1,198 | 1,133 | |
Net earnings from continuing operations | $ 3,967 | $ 3,753 | |
Net earnings (loss) from discontinued operations | 0 | 1,549 | |
Net earnings | $ 3,967 | $ 5,302 |
The following assumptions were used to develop the forecasted financial statements:
Depreciation expense to start of year PPE, net | 21.2% |
Amortization expense to start of year intangible assets, net | 4.9% |
CAPEX to total net sales | 1.8% |
Dividends to net earnings | 33.5%
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Following are the forecasted income statement and balance sheet for Lockheed Martin Corporation for the year ended December 31, 2017. Prepare a forecasted statement of cash flows for the company for 2017.
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